Understanding Price Protection
These days there are a lot of questions regarding price protection. As you know, the price of fuel can fluctuate wildly over the heating season. Sometimes, it fluctuates only by a few pennies, and sometimes it can jump dollar amounts in a short time frame. This can change the costs for heating your home overnight.
Price Protection is just what it sounds like; it is protecting you from the often wild price fluctuations of the market. No one knows exactly what the market will do on a given year, (or even day to day!) things like world events, supply & demand, politics and more, can effect what happens with the price. It is hard to say what the “best plan” is for a heating season until that season is over. That’s why we take the time to explain all of your options and let you choose what works best for you.
How price protection works is this… You ask us to reserve a certain number of gallons of fuel for the season by entering into a legal contract with us. We then go out and purchase those gallons on the futures market for you, with our suppliers. We do this to honor our commitment to you. If you choose our cap plan, we purchase that protection for you. That way we are able to honor our fair price guarantee and fluctuate our price to a fair market value, that is something many of our competitors do not do. They claim to be providing the downside protection, yet the delivery prices never actually reflect a fair market price.
Right now, we’re seeing lower prices. This is due to increased US production of oil combined with lessening demand in Europe. And then there is Saudi Arabia’s recent decision to defend its market share by cutting prices. What this means is consumers are seeing the lowest prices in years. This is great news for consumers and we hope it continues!
Customers who have selected the Bottini Price Cap plan have saved $250 or more, on average, so far this heating season. What the Price Cap plan does is sets the highest price that you will pay for fuel over the heating season. What if the daily price of fuel is lower? You will pay the lowest price. Why you ask?? Because… We’ve got you covered!
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